Lufthansa seeks JetBlue code-share
Published: August 30 2009 22:45
Lufthansa plans to seek regulatory approval to form a “code-share” agreement with JetBlue Airways, marking the German airline’s latest effort to forge closer ties to the US carrier and its coveted New York hub.
Code-shares, so called for the two-letter codes used to identify the airline operating a given flight, emerged in the 1980s to help ease passenger concerns that switching carriers during a transcontinental journey would inevitably lead to missed connections and lost luggage.
By marketing JetBlue’s flights as its own, Lufthansa would broaden its footprint at John F Kennedy International Airport, a key US gateway to the world.
The arrangement may in turn help JetBlue, one of the biggest operators at JFK, persuade more US passengers to choose its service on transatlantic travel.
The two companies will file their request with the US Department of Transportation as early as Monday, people familiar with the matter said. Lufthansa acquired a 19 per cent stake in JetBlue last year for $300m.
Stephan Gemkow, Lufthansa chief financial officer, and Christoph Franz, chief executive of Swiss International Air Lines, a Lufthansa unit, sit on the New York airline’s board.
Lufthansa shared few details on its plans for JetBlue at the time of its initial investment, fuelling the doubts of industry insiders who viewed the partnership as an unlikely pairing.
Germany’s flag carrier and the second-largest airline in Europe, Lufthansa had already established a joint venture with United Airlines, with a global network and powerful hubs in Chicago, Washington, Los Angeles, Denver and San Francisco.
In contrast, JetBlue had emerged in the past decade as a plucky domestic airline that lured passengers with cheap tickets and live television.
But unlike United Airlines or Lufthansa’s other US ally, US Airways, JetBlue possesses a large trove of take-off and landing slots at JFK – one of the world’s top international airports in the largest US city. Last year, the carrier opened a new, state-of-the-art terminal at JFK capable of handling as many as 250 flights a day.
Code-share accords are a staple of international travel, with alliances and joint ventures extending the reach of domestic airlines to every corner of the world.
Lufthansa anchors one of the three major groupings, the Star Alliance.
“We’re looking to capitalise on our position at JFK, where we’re the largest domestic airline,” JetBlue said.
